Industry News by Nemesis

Carlos Sumbula Champions OPEC-type Move to Spur Diamond Prices

February 20, 2016

The chairman of state-owned Endiama’s board, Antonio Carlos Sumbula, is the flag-bearer of an initiative by diamond producing nations in mid-January to reduce their supplies to the market to boost sagging gem prices. Sumbula hopes the move, which takes its cue from the OPEC oil cartel, will bring higher prices in 2016.

 

The initiative has the backing of India’s Gem & Jewellery Export Promotion Council which called producer countries to reduce their supplies for several weeks. It also coincides with a decision by Debswana (a JV between De Beers and Botswana) to suspend maintenance operations at its Damtshaa mine until 2018 and cut back production at the Orapa and Letihakane mines over the same period. However, De Beers’ decision to double the value of its sales in the first auction in the new year to $540 million as opposed to the sale last December, runs counter to the initiative. 

 

Source: Africa Intelligence

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